Athens Stock Exchange: Continuous Rise and New Records Boosted by MSCI

The Greek stock market is rising for the third consecutive day, stabilizing above 2,300 points and renewing its 16-year record (January 2010).

In Wednesday's session (28/1), the General Index increased by +0.66% and is trading at 2,328.84 points.

The decision by MSCI to put the upgrade of Greece to developed markets under consultation continues to boost the market. Analysts point to targeted placements by retail investors ahead of the upgrade, as well as departures from funds that invest exclusively in emerging markets.

The MSCI announcement contributes to investment optimism but also causes fluctuations in stocks due to the expected change in weighting factors, indicating increased volatility. The reduction of the MSCI Standard Greece coefficient is likely to bring significant outflows in the short term.

With banks playing a leading role, Athens Avenue surpassed 2,300 points for the first time since January 2010. The ASE is up more than +9% in January, while the banking sector is at a 10-year high (November 2015).